Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
- p) l4 x9 e2 F; K7 q1 Hcompanies producing Jet fuels but Biofuels. Also no wonder if some of
. b6 J! r6 ~1 z* fthese oil producer will go bankrupt or out of the business even if
* B$ ?* |% ~, k; Z& c% r* L0 zcrude prices improves. This implies also to good names such as Shell,
8 T$ ~- {& m* k# Z9 aEXXON, BG, BP, Cheveron ....xyz.. oils
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4 s: j- A  W7 [/ CRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
9 C4 K9 d( A8 ?! YA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
8 `- O! P; D. j6 J. Mof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
8 }" z8 u7 g2 lArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
7 D; Y1 e4 ?- M4 rbeing used to double their output.


0 b( }6 D: q* c% M3 ]' B4. Production of bio-fuels is beginning to reach critical mass. Bio
2 o1 O! q, b* m# H8 y+ x' i; Rfuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
' a$ [+ m% m% |racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
' f& [3 @( k" [5 a6 V3 ]: Oare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
1 l7 s4 d( T3 _# b5 ?construction around the world at this time. Several hundred more are
4 k+ y, i5 Z2 ?0 T+ Hexpected to be built in the future. Much of the energy they produce
+ K' |! Z4 R1 Z) }+ swill replace oil.
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, ^  f8 d+ D+ E5 Y0 g' g$ ]5 |7. Every company in any form of transportaion business is replacing
8 h  P7 s' `. a) oolder equipment such as trucks, airplanes, train engines, ships, etc.
( D1 v! U/ @; `& U' W+ y4 s: `2 N) jwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
$ K7 k/ `2 t6 Q, n- l- s& \9 Zequipment.

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  `  \3 a, g$ Q" Q0 LAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
3 t- Y: M* `, _0 N0 e* ?capture methane gas from landfills. This is a huge source of gas
( i7 t' ]7 [8 r/ l0 r  ?7 javailable at very little cost or risk. The gas is displacing crude
oil.


( n" z* W, D# d5 e/ h1 |# {9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
' D, h, D6 v/ ^) M4 G) Hoil wells.
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5 R# @0 W5 U! W8 j* J' d10. Solar, wind and ocean energy is displacing oil as an energy
5 O. {- T4 b1 Qsource. Three new wind turbines are being erected every day in the US.
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" k9 m+ _# H2 P5 b/ \  ]Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
% B. V; h3 a9 v7 Tto control oil prices.
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With the above scenario, I still believe that there are under
4 ^# l/ m1 a9 m) f) N' W3 Vperformed OIL companies and probably they are yet to get the justified
value .....
. X; s" ]) b1 {0 H. f' UIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...


" M: Z: n4 }: \6 y5 `The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only